Senators want to turn up heat on InfoCision, other charity telemarketers

Bloomberg reports that three U.S. senators want the Federal Trade Commission to investigate the connection between major national charities and telemarketers — including InfoCision Management Corp. of Akron — for possibly abusing tax-exempt status or breaking the law.

“I am writing to ask that the FTC investigate reports that telemarketers acting on behalf of well-respected charities are deploying deceptive tactics to induce individuals to donate money that is kept mostly, and sometimes entirely, by the telemarketer,” Sen. Richard Blumenthal, a Connecticut Democrat, wrote to the FTC on Nov. 30. “These practices are unethical and in some circumstances may be illegal.”

In September, Bloomberg Marketsreported that InfoCision, a large charity telemarketer, raised money for the American Cancer Society, the American Diabetes Association and other national charities “while falsely telling potential contributors that 70% of the money raised went to the charities,” even though the actual percentage is far less.

Sen. Kohl tells Bloomberg, “This particular scheme is one that needs to be looked at closely by the Consumer Financial Protection Bureau, Federal Trade Commission and Department of Justice to make sure it can't happen again.”

FTC spokesman Frank Dorman declined to comment to Bloomberg. Greg Donaldson, national vice president for corporate communications for the Cancer Society, tells the news service, “We welcome the chance to clarify the facts and will cooperate fully.”

InfoCision's chief of staff, Steve Brubaker, tells Bloomberg that the company has been a dependable partner to some of America's best charities for decades and takes its obligations to them and to potential donors seriously.

“Our legal counsel has asked us not to comment on the merits of these claims other than to say we vigorously dispute these allegations and will respond accordingly in the proper judicial forum,” he says.

At the time of the original Bloomberg Markets story, Mr. Brubaker offered a five-paragraph response to the allegations. You can find that statement here.

This and that

Heart to heart: Former Vice President Dick Cheney is writing a book about his battles with heart disease — an idea he hatched in Cleveland.

The Associated Press says the 71-year-old Mr. Cheney is collaborating with his cardiologist, Dr. Jonathan Reiner, and with his daughter, Liz Cheney. The book is scheduled for next fall.

Mr. Cheney, who received a heart transplant in March, tells the AP that the idea for the book came from Dr. Reiner after they appeared together at the Cleveland Clinic for a conference on heart treatment. As the former VP explained, the Clinic wanted him to speak because in his case "They've done everything they can to a patient."

Crain's Detroit Business reports that Mr. Gilbert's Rock Ventures LLC announced the purchase of the building, confirming previous rumors that the former home of the Michigan Consolidated Gas Co. was under contract to be sold to the company. A real estate source familiar with the deal said the purchase price was $8.5 million, Crain's Detroit reports.

It's the 10th building Rock Ventures has purchased since the beginning of 2011.

The unprofitable $9 beer: Forbes.com takes a look at what apparently has become a complicated part of the sports business world: selling beer at stadiums.

From the story:

Once upon a time, a local beer distributor could hook up with a stadium concessionaire like Aramark or Levy and get his brand added to the mix. No more. You want your suds poured at the ballpark? You need to be a sponsor. The competition can be fierce — unlike staples like hot dogs or soda, where clubs tend to make a deal with a single brand, beer isn't exclusive. … Sports sales executives, under big pressure these days to bring in added sponsorship dollars, face the challenge of convincing beer and spirits distributors that a full-blown sponsorship is worthwhile.

At the baseball Winter Meetings in Nashville, one of the speakers was beer industry veteran Matt Borgard, director of venue sales for Crown Imports, the importer of Corona.

“Pushing his brand into Cleveland's Progressive Field or Atlanta's Georgia Dome means setting up portable Corona 'Beaches' around the venue, a tie-in to the company's 'Find Your Beach' ad campaign,” Forbes.com reports. “The exposure is vital, because few beer brands sell enough at games and concerts to turn a profit, even with the high markups on the prices. Distributors aren't that impressed with your annual attendance numbers — they know that a lot of those people aren't drinkers.”